A&O and Eversheds cite international investment as growth driver for first half of 2011-12

Allen & Overy (A&O) and Eversheds have both confirmed increases in revenue at the half-year point, with A&O posting an 11% hike while Eversheds saw fee income climb by just under 7%.

A&O cited recent investment in key international markets as the principal driver of its double-digit growth, with the firm bringing in revenues of £582m for the period from 1 May to 31 October, up from the figure of £526m the firm took in during the equivalent period last year.

A&O pointed to particularly strong contributions 
from its Australia, France, Germany, Indonesia and Washington DC offices.

Managing partner Wim Dejonghe (pictured) said: "We are quite pleased with the result so far. However, it is worth noting that the market looks better in the rearview mirror than it does on the road ahead. That looks quite bumpy and it is the same for all the firms.

"We were also pleased that our investments on the continent, where we have made a number of lateral hires in France and Germany, have paid off, with both of those practices seeing growth."

A&O has launched 11 international offices in the last three years, most recently opening up in Washington DC this summer, as well as in Indonesia and Australia last year. The firm also opened in Casablanca, Morocco, this summer, marking the firm's first office in Africa.

News of A&O's results comes as Eversheds posted a 6.7% increase in revenues for the first half of the 2011-12 financial year.

Turnover at the top 10 law firm increased to £184.2m over the six-month period, against an equivalent figure of £172.6m last year. The firm said it saw fee income grow significantly across practices including financial services, where revenues increased by 15%; construction litigation, where revenues grew 23%; and competition and real estate environmental, both of which saw increases 
of more than 20%.

Meanwhile, Eversheds' international operations saw an overall increase in turnover of 22% for the first half of the year, with the growth coming on the back of launches in Romania and Hamburg and a merger with Middle Eastern law consortium KSLG, which handed the firm new offices in Iraq, Jordan, Saudi Arabia and Dubai, over the period.

Eversheds chief executive Bryan Hughes commented: "All of our key indicators are positive, with activity and billings ahead of last year. Our strong revenue position has flown down to the margins, with a £10m increase in net profit."

He added: "It goes without saying that market conditions remain interesting, in recent weeks changing by the hour. However, we have had a good half-year which gives us a robust platform for the next six months."

A stream of UK top 50 law firms have posted revenue increases for the first half of the current financial year in addition to A&O and Eversheds. Ashurst and pre-merger Clyde & Co both posted 12% hikes, while Olswang saw revenues grow by more 
than 20%.